Derviş is currently married to his second wife, Catherine Derviş, an American citizen. He is also the author of "Recovery from the Crisis and Contemporary Social Democracy", which was published in 2006.

Kemal Derviş completed his early education in Institut Le Rosey. He later earned his bachelor (1968) and master's degrees (1970) in economics from the London School of Economics and his PhD from Princeton University, U.S. (1973). From 1973 to 1976, he was member of the economics faculty of the METU in Ankara, Turkey, and served also as an advisor to Bülent Ecevit during and after his Prime Ministerial duties. From 1976 to 1978, he was member of the faculty, Department of Economics at the Princeton University.

In 1977, he joined the World Bank, where he worked until he returned to Turkey in 2001. At the World Bank, he held various positions, including Division Chief for Industrial and Trade Strategy and Director for the Central Europe Department after the fall of the Berlin Wall. In 1996, he became Vice-President of the World Bank for the Middle East and North Africa Region, and in 2000, Vice-President for Poverty Reduction and Economic Management. In the first position, Kemal Derviş coordinated the World Bank’s support to the peace and reconstruction process in the Balkans (Bosnia) and the Middle East. In the second position, he was responsible for the World Bank’s global programmes and policies to fight poverty and the development of the Poverty Reduction Strategy Paper (PRSP) initiative that had just been launched. He was also responsible for the operational coordination with other institutions, including the International Monetary Fund (IMF) and United Nations institutions, on international institutional and policy issues.

When Derviş became Turkey’s minister of economic affairs in March 2001, after a 22-year career at the World Bank, the country was facing its worst economic crisis in modern history and prospects for success were uncertain. Derviş used his independence from domestic vested interests and support of domestic reformers and civil society to push through a tough stabilization program with far-reaching structural changes and sweeping bank reforms that protected state banks from political use. Derviş also strengthened the independence of the central bank and pushed through deep structural reforms in agriculture, energy and the budget process. These reforms, and his reputation and top-level contacts in the U.S. and Europe, helped him to mobilize $20 billion in new loans from the International Monetary Fund and the World Bank. Rapid economic growth resumed in 2002 and inflation came down from an average of nearly 70 percent in the 1990s to 12 percent in 2003; interest rates fell and the exchange rate for the Turkish lira stabilized.

Derviş resigned from his ministerial position on 10 August 2002 and was elected to parliament on 3 November of that year as a member of the main opposition Republican People's Party.